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Chinese regulators signaled concern about the yuan's rapid appreciation and urged traders to avoid one-way bets. The PBOC said the exchange rate cannot be used to boost exports or offset high commodity prices, and it warned against speculation.
The yuan had gained 1.6% against the dollar in May.
Official warnings against speculative yuan bets may slow appreciation, which limits the boost to China's dollar-priced commodity purchases. The stance signals that Beijing is prepared to act against further gains.
scmp.comFrank TangJun 1, 2021After 42 past neutral policy events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (50% higher; middle half -0.3% to +0.4%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
